Sugar stocks rose on Wednesday after the announcement that traders of the commodity would meet the food ministry at noon to discuss the increase in exports. However, shares of some sugar companies seemed unexcited and traded in the red.
Indian Sugar Mills Association (ISMA) had written to the food ministry to allow exports above the allowed 10 million tonnes. As per a few reports, the ISMA has asked the government to allow 80 lakh tonnes of sugar export under Open General License during the next sugar season starting October 1, 2022.
This came after the Centre notified capping of sugar exports at 10 million tonnes in the current marketing year ending September to maintain the domestic availability and price stability. The notification was issued by the Directorate of General of Foreign Trade late at night on May 24.
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At 1425 IST, shares of Shree Renuka Sugars, Balrampur Chini Mills, Dwarikesh Sugar Industries, Dhampur Sugar Mills, and Uttam Sugar Mills were up 0.4-2 percent.
Take a look at how much sugar stocks have risen in the past year:
| Sugar stocks | 1 Year | |
| 1 | Shree Renuka Sugars | 89.50% |
| 2 | Balrampur Chini Mills | 15.30% |
| 3 | Dwarikesh Sugar Industries | 40% |
| 4 | Uttam Sugar Mills | 48.50% |
Market participants believe that the government's ethanol push — which has led to stronger demand for the distillery business — is the primary reason behind the industry hitting a sweet spot, besides reducing supply from Brazil, the world's largest sugar exporter.
Meanwhile, Carlos Mera Arzeno, a senior commodity analyst at Rabobank, said that the Russia-Ukraine war does not impact sugar prices directly.
First Published: Jun 15, 2022 2:52 PM IST
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